The Walt Disney Co. will merge its streaming multichannel video service Hulu with Live TV with its competitor Fubo in a surprise deal that will shake up the streaming TV business, a spokesperson for Fubo says.

The deal will do a couple of big things if and when it is completed: For starters, it will create a much bigger player in the virtual multichannel video provider (vMVPD) space, one that can more aggressively take on the market leader YouTube TV. YouTube TV said a year ago that it had 8 million subscribers, while Hulu + Live TV had 4.6 million subscribers and Fubo had 1.6 million subscribers, giving a combined offering 6.2 million subs. Notably, the deal would also end Fubos legal action against the Venu sports streaming service, potentially allowing it to proceed. Venu is the skinny streaming bundle that includes Disneys ESPN channels and ABC, Fox and Fox Sports 1, and the sports channels from Warner Bros. Discovery.

Fubo sued and secured an injunction pending the trial, putting the service on ice for the entire NFL season.

The deal does not include the core Hulu SVOD service, and is focused only on the vMVPD offering. It is expected to be announced officially on Monday.

According to Bloomberg, which first reported the news, the joint venture will be 70 percent controlled by Disney, with Fubo owning the remaining 30 percent. It also reported that the companies plan to continue offering services under both the Fubo and Hulu brands.

More to come.